Big debts and broken dreams: students without degrees branded as 'failures'

By Matthew Knott

31 July 2016 — 10:17pm

Allowing universities to enrol as many students as they want has harmed the economy, diminished the value of higher education, and created the false view that anyone without a degree is a "failure", according the nation's most prestigious universities.

In a provocative speech to business and university leaders, Vicki Thomson, executive director of the Group of Eight (Go8) universities, will argue the surge of enrolments over recent years has left too many graduates with "broken dreams and a large student debt".

She also blasts employers for demanding university qualifications for jobs that don't need them and expecting universities to operate as if they were factories churning out widgets.

"Why are we all so reticent about stating the obvious - that university isn't for everyone," Ms Thomson will tell the Graduate Employability and Industry Partnerships Forum in Sydney on Monday.

Vicki Thomson, the chief executive of the Group of Eight universities

Photo: Supplied

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"We should be encouraging vocational study, not allowing it to be seen as a consolation prize."

Students should be encouraged to study at TAFE, rather than university, if that is best for them, Ms Thomson says.

The Gillard government in 2012 introduced the "demand driven system" which removed limits on how many bachelor-level students universities could enrol. Undergraduate enrolments grew by 26 per cent from 2009 to 2014.

"I doubt it was ever intended that the demand-driven system would set up society to consider the lack of a degree as a failure, but that is what has been occurring," Ms Thomson says.

"This is is a real issue that requires correcting as quickly as possible."

Ms Thomson takes aim at employers for demanding a university degree for jobs such as personal assistants or administration co-ordinators that required only high school completion or a TAFE diploma until recently.

"Suggesting a degree for a position that may not need one is an uncomfortable trend that risks diminishing a university education and sends concerning signals to job seekers," she says.

"This is not being elitist, it is simply fact."

The Go8 - representing the University of Sydney, University of Melbourne and other top institutions - is calling for a moderation to the growth of undergraduate enrolments. This has angered other universities, which say the uncapped system has expanded opportunities for disadvantaged students to attend university.

Education Minister Simon Birmingham, a passionate defender of the demand-driven system, has said he has no desire to dictate how many students universities can enrol.

Ms Thomson says it is "gratifying" that almost 40 per cent of Australians aged 25 to 34 have an undergraduate degree but this has created the perception that this achievement is no longer special.

"But it is special," Ms Thomson says. "It's hard work.

"It should be rewarded not devalued."

According to Graduate Careers Australia, 69 per cent of university graduates found a job within four months of finishing a degree in 2015 - down from 85 per cent in 2008.

In the speech Ms Thomson blasts business groups for accusing universities of not producing enough "work ready" graduates. Employers must take more responsibility for providing training and mentoring to new employees, she says.

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"Universities have a far broader role in society, and for our students, than being a degree factory for jobs," she says.

As well as teaching specific skills, she says universities must also provide skills such as problem-solving, analytical thinking, research and communication that apply across many fields.